Sustainability and corporate governance exchange-traded funds (ETFs) managed by Itaú Unibanco, the second biggest Brazilian bank by assets, are set to start trading today (October 31), according to the BM&FBOVESPA exchange.
The first, the IT Now ISE Index Fund, tracks the BM&FBOVESPA Corporate Sustainability Index (ISE). It aims to reflect the return on a portfolio composed of shares in companies with a recognized commitment to social responsibility and corporate sustainability.
The second, the IT Now IGCT Index Fund, tracks the exchange’s Corporate Governance Trade Index (IGCT). It assesses the performance of shares in companies that voluntarily adopt differentiated corporate governance standards.The launches take to 10 the number of ETFs available on BM&FBOVESPA. Last month, total ETF volume on the bourse was BRL1.42bn (€603m). Itaú won an exclusive one-year licence to use the indices in March this year (RI coverage).
Earlier this year the exchange launched its “Em Boa Companhia – Programa de Sustentabilidade com Empresas” (In Good Company – Sustainability Program with Firms) project.
Brazil has a total of 51 signatories to the United Nations Principles for Responsible Investment, including 15 asset owners. The PRI is to hold its annual ‘PRI in Person’ event in Rio de Janeiro in June 2012. BM&FBOVESPA link